Church Tax for Corporate Bodies

Whereas individual persons not belonging to a recognised religious institution are exempt from paying church tax, corporate bodies are denied the right to use the relevant constitutional article #15 for themselves.

7 Arguments against the enforced levy that benefits the established churches

1. The federal constitution does not require levying corporate bodies but it allows it. The Federal Court defines the religious freedom barely as a protective standard for individual persons (BGE 126 I 122). Cantonal law making bodies are therefore free to create a church tax legal framework for corporate bodies. This assessment is disputed. The FVS rejects it.

2. Churches and religious communities pursue primarily religious aims. The do not deliver a state service.

3. Even if church taxes levied from corporate bodies were potentially used for for "non-cult"  purposes (a so-called inverse purpose), it would still mean that only the churches profit from the tax rather than the general community households.

4. The argument consistently used by proponents of church tax that corporate bodies derive a "profit from socially relevant benefits" cannot a legal basis for the tax. If it was then everybody, even individual persons not belonging to an established church, would need to taxed since they could be considered recipients of such benefits.

5. It is obvious that the sole motivation of the proponents for the corporate body church tax is its the the incentive to maintain the financial health of the established churches.

6. On several occasions, a change to a "voluntary" church tax was demanded. In our opinion, a tax is either due or not due. A voluntary tax is inherently contradictory. (In spite of this, the cantons Neuchâtel and Geneva have introduced a system in which tax bills are issued but payment is voluntary).

7. The FVS demands that churches be treated in the same way as any other service provider. When a canton considers services delivered by churches or religious groupings as valuable for the community as a whole then it can compensate them through service contracts that must be open to scrutiny.

Situation in the Cantons

No church tax for corporate bodies is levied only in these cantons: Basel Stadt, Schaffhausen, Appenzell Ausserrhoden, Aargau and Geneva.

Canton Berne: Abolishment attempts: 1979 motion FDP/Gygi, 1999 motion Hess and 2006 motion FDP/Bolli Just (rejected by name vote with 119 against 20 votes and 13 abstentions)

The cantons Vaud and Valais do not actually levy a church tax. Running costs of churches are included in cantonal and community budgets and are therefore covered by general tax revenue towards corporate bodies contribute.

The canton Solothurn does not strictly levy a church tax from corporate bodies. Instead, corporate bodies have been charged since 1952 a financial compensation tax of 10% of the simple cantonal tax, which is passed on to the church communities recognised by the canton.

The canton St. Gallen does not strictly levy a church tax from corporate bodies. Of the surcharge on capital and capital gains taxes (220% of the simple tax), a portion (22.5% of the simple tax) is applied for the tax equalisation among the church communities.

The canton Neuchâtel does levy a church tax from corporate bodies but payment is voluntary.

In the canton Ticino, not all church communities use their right to levy church taxes. Individual persons and corporate bodies can opt out by notifying the taxation department.

As a rule, the following corporate bodies are subject to taxation: Limited share companies (e.g. AG and GmbH), cooperatives, associations and trusts. In the canton Glarus, Holding and domicile companies are not subject to church tax. In the cantons Schwyz, Nidwalden and Graubünden, church tax is also levied from public companies. The cantons Zürich, Solothurn, Thurgau and Jura also levy tax from all other corporate bodies. The canton Schwyz taxes investment funds with associated land holdings.

ESTV Die Kirchensteuern 2009

Federal Court

Exemption only for corporate bodies who have a religious or church-related  purpose

While individual persons not belonging to a recognised religious community are exempt from paying church duties, the relevant constitution article 15 does not apply to corporate bodies.

The Federal Court makes an important exception with those corporate bodies that have a religious or church-related  purpose. They are not required to pay cult or church taxes to other religious communities (see BGE 95 l 350 ff).

ESTV Die Kirchensteuern 2009

The media